Hey there! 🌟
Anastasia Melachrinos from Kaiko pointed out that USDC might start taking market share from its bigger rival, Tether’s USDT.
📊 This shift could happen because traders often use stablecoins to move digital assets between exchanges or to store value when token prices get choppy.
We're already seeing these regulatory changes shake things up on major crypto exchanges. For instance, OKX has cut back on trading support for USDT in the EU. But don't worry, you can still deposit, withdraw, do over-the-counter transactions, and exchange USDT for euros. 💶
Kraken is also considering changes and might delist USDT due to new EU regulations called MiCA (Markets in Crypto-Assets).
Anastasia said during a conference call, "For sure Kraken and OKX are going to delist all the EURO/USDT pairs." 📞
MiCA is set to be fully in place by early 2025. The European Banking Authority will enforce these new rules for stablecoins. Issuers of asset-referenced and e-money tokens will need a license from a national financial authority by June 30. They'll also have to meet strict requirements on corporate governance, conflict of interest, and reserve management, including keeping a third of all funds at an independent credit institution. 🏦
SEC Scrutiny Impacts Circle’s IPO Plans
In the U.S., Circle’s USDC stablecoin is facing some heat from the SEC as it tries to launch a multi-billion dollar IPO. 🚀
The SEC has concerns about classifying USDC as a security, which already delayed Circle’s attempt to go public via a SPAC in 2021. Circle has tackled most of the SEC's issues but is still navigating the regulatory maze to get the green light for its IPO. 🏛️
